Shiba Inu Price Enters Most Crucial Week In 1.5 Years, Here’s Why
December 04 2023 - 7:00AM
NEWSBTC
The Shiba Inu (SHIB) price is entering a week that has the
potential to be the most important week in 1.5 years. As explained
in previous analyses, SHIB has shown conflicting patterns in the
weekly chart: a bullish quadruple bottom and a descending triangle.
This week, the situation could be resolved and the bullish chart
pattern may be validated. At press time, SHIB traded at
$0.00000933. Thus, the Shiba Inu price broke above the descending
trendline of the triangle pattern. Why SHIB Enters The Most Crucial
Week In 1.5 Years The quadruple bottom pattern has formed over the
extended period of 1.5 years, with the price touching the support
zone between $0.00000715 and $0.000006 four times, creating an
ultra-strong base. Over the last 18 months, it suggested a strong
level of support, as SHIB has consistently bounced off this price
point, indicating a reluctance to move lower. Related Reading:
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Community Into Speculation The descending triangle, characterized
by a flat lower-bound support level at $0.00000715 and a
down-sloping upper-bound resistance trendline, has acted as strong
resistance. The price has been rejected at the resistance line a
total of 10 times since last year. As the price pushed above this
trendline, a weekly close above this line could signify the
commencement of a bullish reversal. Moreover, the 50-week
exponential moving average (EMA – orange line) also played a
crucial role. On the occasions when SHIB was able to break out
above the descending trend line of the triangle (on the lower time
frames), it never managed to close the week above this indicator.
This week, SHIB bulls have a new chance. While SHIB is already
trading above the descending trendline of the triangle, the price
still has to close above the 50-week EMA at $0.00000973 next
Sunday. If it succeeds, this would mark an unprecedented extremely
bullish sign. Finally, a breakout above the psychologically
important level of $0.00001 could be the last hurdle for a strong
move upward. A breakout of this nature could lead to a shift in
market sentiment, with the potential to initiate a significant
price surge. Related Reading: Shiba Inu L2 Shibarium Crosses 4
Million Transactions As Burn Rate Explodes Notably, the volume does
not show an unusual spike yet, which would typically accompany a
breakout, suggesting caution. However, the weekly RSI stands at
57.36, indicating the asset is neither overbought nor oversold and
potentially allowing room for upward movement if a breakout is
confirmed. Short- And Long-Term Shiba Inu Price Targets Looking at
the Fibonacci levels, the upcoming key price targets to watch
following a successful breakout would be the 0.382 and 0.5
Fibonacci levels, standing at $0.00001051 and $0.00001190,
respectively. These levels would be the short-term targets for
SHIB, potentially acting as resistance points in the event of an
uptrend. In the mid-term, the next crucial price levels are the
0.618 Fibonacci level at $0.00001329, the 0.786 Fibonacci level at
$0.00001527 and the August 2022 swing high at $0.00001780. However,
traders can also expect notable resistance at $0.000017 which acted
as crucial support and resistance in the past. In the long term,
the 1.618 Fibonacci extension level at $0.00002509 and the 2.618
Fibonacci extension level at $0.00003690 are some notable price
targets. In conclusion, the weekly close firmly holds the market’s
attention. If SHIB’s price sustains above the descending trendline,
it would mark a significant technical pivot point, likely
catalyzing a bullish wave due to the culmination of the quadruple
bottom support hold and the descending triangle breakout. Featured
image from Shutterstock, chart from TradingView.com
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